How Personal Insurance Becomes Involved in a Claim
Insurance Settlement Process
Settling insurance claims frequently involves multiple insurance companies. Depending on who owns the vehicle, claims are processed in the following order:
- University of Illinois System Vehicles
- Rental Vehicles
- Commercially Insured System Vehicle
- Personal Vehicle
However, coverage can be jeopardized if the accident is not reported immediately.
University Vehicles
The State of Illinois Self-Insured Motor Vehicle Liability Plan (State Plan) is administered by the Department of Central Management Services (CMS). The State Plan is the primary liability insurer for system vehicles, but there may be situations where other insurance plans are involved.
The State Plan provides liability coverage to full-time, part-time, and student employees or student trustees operating a university motor vehicle in the course of their employment and in accordance with State of Illinois and system policies and procedures. Neither the system nor the State of Illinois will insure any driver who uses a system motor vehicle for unauthorized purposes (see the Illinois Administrative Code Section 5040.350, Paragraph C.)
The State of Illinois may accept liability to others harmed by a system employee's negligence, but occupants of system motor vehicles are not provided any medical payments. System drivers or passengers are covered by workers' compensation benefits if injured while on system business.
Any personal property belonging to drivers and/or occupants is the responsibility of those individuals. Neither the system nor the State of Illinois provides any insurance coverage for personal property.
Rental Vehicles
The University of Illinois System utilizes the E and I Cooperative Services agreement with Enterprise Holdings, Inc. Employees receive discounted rates on rental vehicles in the United States, which include, at no additional cost, liability insurance and optional damage waiver. This coverage pays first in an accident that involves a rental vehicle. The State of Illinois Self-Insured Motor Vehicle Liability Plan pays second if the rental company limits are exhausted. If for any reason the State Plan denies coverage, the employee’s personal auto insurance pays next.
Commercially Insured University Vehicles
The University of Illinois System has a limited number of vehicles in each university motor pool that are insured through a commercial insurance policy that is the primary insurer. If for any reason the commercial insurer or the State of Illinois denies or limits coverage, the employee’s personal auto insurance pays next.
Personal Vehicle
If an employee on system business has an accident while driving their personal vehicle, their personal auto insurance is primary. After personal auto insurance has been exhausted, the State Plan only provides liability coverage. The State of Illinois does not provide collision coverage for employee vehicles.
Related Policies and Procedures
15.3 Motor Vehicle Accidents
Additional Resources
Car Rental
Illinois Administrative Code Section 5040.350, Paragraph C
State of Illinois Self-Insured Motor Vehicle Liability Plan
First Published: September 2012 | Last Updated: May 2024 | Last Reviewed: May 2024